E 
,\DL5 



A Free Continental System— the best means of in- 
creasing our agricultural, manufacturing and 
commercial prosperity. 




REPLY 



HON. ELIJAH WARD, 



The Letter of the Horis. Samuel J. Randall, N. B. Judd, 
W. S. Holman, D. S. Bennett, W. E. Niblack, Samuel 
Hambleton, J. Lawrence GetZj Charles Haight. 
James B. Beck, and Charles A. Eldridgc, 
requesting his views as to the best meas- 
ures for ensuring the largest pos- 
sible extent of mutually bene- 
ficial intercourse with tlic 
adjacent countries. 



GEORGE F. NESBITT & CO., PRINTERS, 

COR. PEARL AND PINE STREETS. 



1870, 





Class. 
Book- 



S^LTl. 



■\AJ2 5 



^ Free Continental System-the best means of in- 

creasing our agricultural, manufacturing ana 

commercial prosperity. 



BEPLY 




/ 



HON. ELIJAH WARD, 



The Letter of the Hons, Samuel J. Kandall, N. B. Judd, 
W. S. Holman, J). S. Bennett, W. E. Niblack, Samuel 
Hambleton, J. Lawrence Getz, Charles Haight, 
James B. Beck, and Charles A. Eldridge, 
requesting his views as to the best meas- 
ures for ensuring the largest pos 
sible extent of mutually bene- 
ficial intercourse with the 
adjacent countries. , 




GEORGE F. NESBITT & CO., PRTNTERR, 
COR. PEARL AND PINE STREETS. 

1870. 






House of Representatives, ^ 

Washington, D. C, > 

May 18, 1870. ) 

Hon. ELIJAH WARD, 

New- York City : 

Dear Sir — One of the clearest indications of the present time is, that 
Great Britain, having already given up to the North American Colonies 
all those exclusive rights which made it her interest to retain possession 
of those Colonies, is now endeavoring by Confederation to lead them 
from the condition of tutelage into that of Communities governed by 
themselves. Through the tenure of power by the Liberal party of Great 
Britain, this movement has acquired increased momentum. In this state 
of affairs, it would be in conformity with the character of the United 
States, who are desirous of promoting self-government in all enlightened 
nations — and especially among the people of our own race on this Con- 
tinent — to consider such measures as will ensure the largest possible ex- 
tent of mutually beneficial intercourse with the adjacent countries. 

Remembering the attention you have for many years given to the 
subject, and the proposals made by you when in Congress, we respectfully 
request an expression of your opinions as to the Commercial System 
most wortliy of consideration by the people of the United States and 
Canada at this important crisis. 

Very respectfully, 

Your obedient Servants, 

SAM. J. K AND ALL, 
N. B. JUDD, 
W. S. HOLMAN, 
D. S. BENNETT, 
"W. E. NIBLACK, 
SAM. HAMBLETON, 
.1. LAWKEXCE GETZ, 
CHAS. HAIGHT, 
JAS. B. BECK, 
CHAS. A. ELDRIDGE. 



A Free Continental System-the best means of in- 
creasing our agncnltural, manufacturing and com- 
mercial prosperity. 



I^E FL^ 



Hon. ELIJAH WARD. 

Gentlemen :-I liave the lionor to acknowledge the receipt of ycur 
favor of the 18th ulthno, requestu.g my opinioa as to the commercial 
svstem most worthy of consideration by the people of the United States 
a'nd Canada at the present important crisis in Colonial history ; and as 
public opinion seems adverse to any mere treaty of partial reciprocity, I 
submit, to you the following 

Suggestions for an American Continental Policy. 

The return of peace and union places us in a favorable position for 

adjustino- oar commercial relations with the British North American 

Province's and Possessions on a permanent and satisfactory basis, and 

adopting an American commercial system, including other neighbor- 

ing nations. 

The subject demands consideration for the sake of its important bear- 
ino-s on every comprehensive plan for revenue reform. The change in 
the political condition of the Provinces facilitates negotiation with them. 
They are no longer, as heretofore, a mere set of disconnected embryo 
States but have become almost an unit, having free commercial inter- 
course' with each other and one general government, thus greatly m- 
creasino- their financial, military, and political power, and their substan- 
tial prosperity. Their inhabitants are already more numerous than 
those of the United States were after the Revolution had terminated : 
and their territorv is capable of supporting in comfort and affluence a 



population more tlian twice as large as exists at the present time in any 
European nation. Owing to tlieir geographical position, their interests, 
like their territory, are inextricably wedded to our own, and the natural 
advantages of neither country can be adequately deveh:)ped independ- 
ently of the mutual benefits and assistance which Avould result from a 
system of reciprocally free imports, exports, and right of transit. 



Public Opinion on Trade with Canada. 

From St. Paul through Cliicago, Detroit, Bufifivlo and Oswego to the 
northeastern boundaries of Maine and New Hampshire, there is no place 
where it is not perceived that the same causes which, by encouraging a 
free exchange of all products between the different parts of our Union 
are the chief origin of our own prosperity, would produce similarly bene- 
ficial results if permitted to have their proper influence between the 
United States and Canada. From one end of the frontier to the other, 
there is practically no difference of opinion as to the object to be gained, 
for the mutual benefit of Canada and ourselves — a reciprocity of com- 
merce, not only in name but in substance, giving neither party any un- 
natural vantage ground. 

Review of the Colonial History. 

A brief review of the history of the Colonies throws much light on 
our proper policy in regard to them. For the last half centurj' they 
have made steady and accelerated progress towards greater freedom and 
independence. The measures adopted by Great Britain appear to en- 
courage the movement. 

Soon after the first American colonists from Great Britain had sur- 
mounted the difficulties and hardships of the earliest settlements, in the 
regions which are now the United States, and had begun to accumulate 
wealth, the exclusive system was applied so far that few articles could 
be exported from the Colonies to any other country without being first 
laid upon the shores of Great Britain. Next, the colonists were com- 
pelled to buy solely from British merchants, and their importations 
could only be made in British ships, " it being the usage of other nations 
to keep the plantation trade exclusively to themselves." Even the ex- 
cellent Lord Chatham, distinguished as a friend of the Colonies, was so 
far imbued with the common heresies of his time as not to hesitate in 
declaring that "the British Colonies in North America had no right to 
manufacture even a nail for a horse-shoe ; " and Lord Sheffield only ex- 
pressed the general opinion of his day when he affirmed that "the only 



use of the Colonies and the West India Inlands is the monopoly of their 
consumption and the carriage of their products." On all these points 
increased enlightenment has effected a quiet revolution. The monopoly 
of the Colonial trade was found to he as unprofitable to the oppressor as 
to the oppressed, and confirmed progress has been made m those views 
of public policy which are inextricably blended with magnanimity and 
liberality. 

Canada now decides for Herself. 

A few years ago the Government of Canada, through its Financial 
Alinister, emohatically declared the right of the people of that country 
to decide for themselves, in all respects, the mode and extent to which 
taxation shall be imposed on them. The British Government was 
warned that serious evils and future complications would result from any 
opposition to the rights thus asserted; and the Canadian Government 
cono-ratulated itself that the British Ministry of that day " have been 
obli"o-ed to admit that we were in the right, and that any assumed inter- 
ference with our rights and privileges is not for one moment to be enter- 
tained " Thus the practices of self-government, only obtained by the 
United States through revolution, were quietly conceded. The most 
strikino- point in this illustration of the reversal of the ancient relations 
of Grelt Britain and h-r Colonies is not merely that so great a concession 
was made to the Colonies, but that the point in dispute was an order in 
Council disallowing a bill inflicting certain disabilities on the shipping 
of the United States. 



Experience and Policy of Great Britain. 

The people of Great Britain have discovered that their own capitalists 
and laborers were inj ured by forcing the trade of the Colonies in artificial 
directions and withdrawing it from the natural and really beneficial pur- 
suits in which it would have been employed. The Revolutionary war in 
the United States strengthened these i:npressions. It was found that 
the independence ot the United States and their consequent prosperity 
contributed materially to the well-being of Great Britain, whose tax- 
payers were relieved from the expense and trouble of governing distant 
and extensive regions, while the benefits of intercourse with them 
not only remained but were augmented. The belief has become more 
and more prevalent in the mother country, that the means by which she 
can most securely and profitably derive the elements of real prosperity 
from her Colonies, is by permitting them to direct their industry into 



those channels which their natural position and advantages indicate as 
the most remunerative. 



Colonial Relations Sharply Defined. 

On the one hand concessions were made to the Colonists by per- 
mitting them to resort to the markets of the world and tax British 
manufactures ; on the other, the British people were gradually 
emancipated from the oppressive taxation which gave the Colonies 
special privileges in Great Britain itself. The latter was especially 
conspicuous as to the indispensable articles of grain, flour and 
lumber. 

The militar_y and naval defense of the Colonies remains as the only 
substantial relic of the ancient policy. The consideration given for it is 
withdrawn. It remains as a tax on the people of Great Britain without 
aff(jrding them any adequate compensation, and the declarations of 
their leading statesmen of aU parties, the actions of their Government, 
and the tendencies of public oj)inion clearly indicate the early termina- 
tion of this anomalous and inconsistent condition. The time is approach- 
ing when, as the most zealous defenders of the old Colonial system have 
admitted would be the case, it will be found that " it is all of a piece and 
must either stand or fall together." 

So evidently correct are the frequent assertions of Canada that her 
Government, acting for her Legislature and people, must, whatever may 
be the deference they owe to the Imperial authorities, decide for them- 
selves as to all matters connected with the tariff; and so completely has 
the principle thus announced been carried oiit in legislation, that Great 
Britain, in reply, is throwing the naval and military defence of the 
Canadians upon themselves. A Canadian journal says that for the first 
time in more than a hundred years the Union Jack has ceased to wave 
from the bastions of Kingston, and it was authoritatively stated that 
within the present year, unless special emergencies intervened, not a 
British soldier will be left in the Dominion. 

The issue seems to be sharply and decisively taken on both sides. 
Lord Grey explicitly and with ample rsason asserts that if "cannot be 
too distinctly understood by the Colonies that the policy now adopted 
towards them by the Home Government and by Parliament, and of 
"which they complain, is very little likely to be altered, unless they on 
their part are ready to recognize the propriety of the exercise of a larger 
measure of authority over them hy the Imperial Government than they 
have of late been willing to submit to." 



Canadian Independence Approaching. 

The Canadians are no less resolute than the British authorities, and 
repel all thoughts of ever reversing^ the policy by which they have 
completely annulled the old considerations for Colonial union with Great 
Britain, or of inviting any further interference with their affairs. Thus 
the position of Canada in remaining nominally dependent upon Great 
Britain, but really governing herself, is becoming more and more 
obviously untenable. Lord Monck, lately Governor-General of Canada, 
substantially declared in the Imperial Parliament that if Canada asked 
for independence, the request would readily be granted.* Independence 
seems to be desired by a large and increasing number of her peojDle, 
but, separately from some understanding or guaranty from the United 
States, is regarded as difficult and dangerous. 



Opportunity for the United States. 

In the present condition of Canada much depends upon the sentiments 
of the people of the United States and the action of our Government 
towards her. A friendly and liberal policy will insure her independence ; 
churlish isolation and ill-will would drive her to seek a new and closer, but 
temporary connection with Great Britain, less advantageous to the 
Dominion, tlie mother country, and mankind, than such an arrangement 
as would fully secure the political liberty of Canada and establish free 
commercial relations with the vast confederation of Celto-Teutonic 
States of our Union. 

The relative geographical positions of the Dominion and the United 
States are such that reasons tending to a closer union with this country 
than with Great Britain, must continually make themselves manifest ; 



* The most recent anrl autlioritative evidence on this suliject is to be founcl in a 
debate in the House of Conmioiiaon the SUth April ol tills year, when the cxi)iessions 
of the leading si)eakers were in nnisoii with those of the Jiritish Pieniier. the Kight 
Hon. W. E. tjladstone, who uttered the following compieheusive and memorable 
words: " Looking bacli at the history of Trans-Atlantic possessions, «e see that 
it is iu the uat are of such possessions to grow, and, as they grow, to alter, in obedi- 
ence to laws more powerlul than the will of any government, the condition of the 
relations with the country which originally planteil them, till at lengtli they arrive 
at the stage of progress at which sepaiatiou talies p ace. In every instaTice that 
separation has been carried out by war and Oloodshed, which left behiud them feel- 
ings of pain ha red or slianie. [Uear, hear ] There is noihiug in the naiure of such 
a state of things to preclude the hope tliat sucli separation may be re.ilized as a 
peaceable and friendly transaction. It is most desiiable to pieserve sueli a policy 
that, if sepaiatiou -sliould ail ive, it may come iu a friendly and not a iiostile form. 
This is the principle of the jireseiit l)oli y of this coiiutry toward the Colonies. We 
hav^e had ample experience of the policy of restraint ai)plied iiy Kuropi-iiu States to 
their colonies, and we have had a most serious warning ourselves in the case of 
Canada ; aid theref>>re it is an honorable chapter in our own times that, without 
distinction of party, the statesmen of tliis conutry competfd with one amitlier in 
their zeal t'l woi k out tliis policy ior the sake of avoiding the perils and disgrace 
■which attaches to separation effected by violence and bloodshed." 



but, tliere is no reason why we should postpone mutual benefits, and, 
discarding a policy of attraction, persevere in repelling the Canadians 
from us. In this aspect I believe the extension of our commercial 
relations with Canada is both opportune and imjjortant. 



Proposals of a Commercial Union. 

Minor experiments have been made and may bo repeated ; but, careful 
investigation has fully satisfied me that nothing less than the applica- 
tion of the principle of the German Zollverein or Customs' Union can 
meet the exigencies of the case and prove satisfactory to the people on 
both sides. It would remove the anticipated danger from independence 
by placing the relations of the United States and Canada on the broad 
basis of those common interests which it could not fail to make more 
manifest as time elapsed. 

Propo.sal in the Canadian Parliament. 

The following resolution, lately presented in the Parliament at 
Ottawa, has, in the main, the same tendencies as concurrent resolutions 
passed a few years ago by the Legislature of the State of New-York, 
and prasented by me in Congress. It, again, brings the subject of reci- 
procity prominently before the public in both countries. The motion was, 

" That an address be presented to His Excellency, the Governor- 
General, representing that the increasing productions of the Dominion 
demand a more extensive market, and a more unrestricted interchange 
of commodities with other countries ; that great advantage would result 
from ])lacing tlie Government of the Dominion in direct communication 
with all the British Possessions and foreign States, which might be willing 
to negotiate for commercial arrangements tending to this result ; that 
it is expedient to obtain from the Imperial Government all necessary 
powers to enable the Government of the Dominion to enter into direct 
communication for such purpose with the British Possessions and foreign 
States, and that in all cases such proposed commercial arrangements^ 
shall be subject to the approval of Her Majestj-." 



Opinions of Congress and. the Newr-York Legislature. 

There is a general impression that Congress has been proved by ita 
votes to be hostile to the principle of reciprocity fully and fairly carried 
out in our commercial relations with Canada and the other British North 
American Possessions. Those who are familiar with the history of the 
Congressional debates on this subject know that this is not the case 
The ordinary temper of Congress has been that of the concurrent reso- 
lutions of the Legislature of the State of New-York. Complaint was 



9 



„.ade in them as to the tariff enacted by Canada during the existence of 
the so-called treaty of Reciprocity ; but they maintained the prmc:ple 
hat "free commercial intercourse between the United States and the 
Bri ish North American Possessions, developing the natural geogra- 
pW and other advantages of each for the good of all, is conducive o 
the present interests of each, and is the only proper basis of our mter- 
« for all time to come;" and. in pursuance of the -.-- ^f t - 
State of New-York, that its Senators and Representatives m Congress 
!wd take such steps as would regulate the commerce and navigation 
t ween the two countries in such manner as to render the same recipro 
X beneficial and satisfactory, I moved in the House of Representa- 
Tves that the President.of the United States should be authorized and 
reTui red to give notice to the British Government that the treaty of 
ormerce then existing, as to the British North American Colonies, 
wouMbe terminated at the eariiest date legally permitted, being twelve 
months from the expiration of ten years after it went into operation 
but that the President should be authorized to appomt three commis 
Toners for the revision of said treaty, and to confer with other com^ 
Hiissioners duly authorized therefor, whenever it should appear to be 
the wish of the Government of Great Britain to negotiate a new treaty 
between the Governments and the people of both countries, based upon 
thl true principles of reciprocity, and for the removal of existing diffi- 

''^The" preamble declared that inequality and injustice existed in our 
present intercourse with Canada, subversive of the true intent of he 
treatv, owing to the legislation of Canada after the treaty had b en 
adopted, and that it was desirable that friendly relations should be enter- 
tained between the United States and the British North A-encan Pro^ 
vinces, and that commercial intercourse should be t^^--^^- 77f/^ 
between them upon principles reciprocally beneficial and satisfactory to 

""t m"!ln'to lay the preamble and resolution on the table was rejected 
by a vote of 76 to 73. Thus the House refused to terminate the Treaty 
unconditionally. The preamble which asserted, that commercial inter- 
course between the United States and the British North American Pro- 
vinces should be hereafter carried on between them "P- P""7J^^ Z;" 
ciprocally beneficial to both parties, was agreed to, and the re o^uti n 
would also have been carried if a few members who, '^^^^^^^^^^^^^^ 
constituents, were conspicuously in favor of, and especially ^-^^^^'^^^^^ 
the utmost possible freedom of exchanges between the two countr es, had 
not been induced to believe that they would obtain better terms by post^ 
Tonement to the next session of Congress. But the postponement was 



10 

only adopted by a majority of five, out of one hundred and fifty-nine 
votes. 

Just before the time for reconsideration arrived, the war feeling had 
attained increased intensity, and the exigencies and temper of the occa- 
sion threw all commercial considerations temporarily aside. 



Special Legislation Expedient. 

So universally acknowledged was the necessity of special legislation in 
regard to this subject, that the distinguished Member of Congress, Mr. 
Morrill, of Vermont, and others who had themselves opposed the reso- 
lution introduced by myself, supported at the next session of Congress 
a bill concerning the trade with the British North American Provinces, 
on the ground that it had become necessary in consequence of the ap- 
proaching termination of the Reciprocity Treaty. He advocated the 
free admission of coal from the Provinces. The supporters of the bill 
hoped to gain some substantial commercial advantages from the Prov- 
inces by substituting reciprocal legislation for a treaty, and provided 
for the mutually free navigation of Lake Michigan, the St. Lawrence 
River, and certain canals on both sides of the frontier, as well as for 
mutual rights of transit for travel and freight. It is obvious that mere 
legislation, revocable, at any time by the fiat of either party, could not 
afford a sufficiently reliable basis for the permanent investments of trade, 
and the industrial pursuits dependent on it. 



Nothing Less than a Zollverein SufScient. 

As objections seem to exist to the free admission of a few articles only 
from each country into the other, and the proposal of special enactments 
with a view to reciprocal legislation meets with little favor, it would 
appear that a system resembling that of the German Zollverein or Com- 
mercial Union would best fulfill the wishes expressed by the Legislature 
of the State of New- York, and the requirements of the people at large on 
both sides of the frontier. Canada producing large quantities of grain 
and lumber, and other raw materials for exportation, and finding demand 
for them among the people of the United States, while there is no little 
corresponding demand for these articles in Canada from this side of the 
frontier, although there is some for re-exportation — reciprocity in them is 
necessarily a one-sided system. To make it real and j ust, manufactures 
also should be admitted free of duty from each country into the other. 
But to place the two countries on a fair basis in this respect, it is neces- 



11 

sary that no liigber duty should be levied in one than in the other on 
iron, copper, wool, materials in part manufactured, &c. The problem is 
how this can be done in such a condition of our financial afllvirs as must 
prevail for many years to come. I found that the relative condition of 
the Canadian Provinces and the United States resembles that recently 
manifested in the German States towards each other. 



The Example of the German States, 
It had been the misfortune of Germany to be divided into a large 
number of independent States— most of them of petty dimensions and 
small population— every one having distinct custom-houses, tariflF and 
revenue laws, often differing very widely from those of the neighbors 
surrounding it. Sometimes one part of a State was separated from its 
other parts, and was as a commercial island encompassed by States having 
different laws. The condition was such as would have existed in New- 
York, or any other of our States, if each of the different counties had 
been 'commercially divided from the rest, and the inhabitants of one 
county could not, without paying heavy imposts, pass into another with 
a horse, ox, or load of grain, the product of their own farms, or take 
imported goods into any of the counties adjoining their own ; and the 
difficulty continually increased on passing through additional counties. 
Thus the inland trade of Germany was subjected to all the restrictions 
that are usually laid on the intercourse between distant and independent 
States. 

Results of the German Union. 

It is universally admitted that no single cause has contributed so much 
to the welfare and prosperity of all parts of our own country, as the per- 
fectly untrammeled intercourse which the States enjoy>ith each other ; 
and it is easy to see how different the present condition of the United 
States would be, if each were commercially independent-jealous of those 
around it, and perpetually contriving how to exalt itself at the expense 
of the rest— rather than by developing its own natural advantages to the 
utmost, and freely availing itself of the special resources of the others. 



Explanation of the ZoUverein. 

In a report made from the Committee on Commerce of the House of 
Representatives, on the 5th of February, 1863, I recommended the appli- 
cation of a system like that of the German Commercial Union to the 



12 

United States and the British North American Provinces. The principle 
of this Union is, that there shall be entire and unrestricted freedom of 
imports, exports and transit among the States which are its members. 
Practically there are a few exceptions to the operation of the rule, but 
they are unimportant, and arise from obsolete causes not existing in the 
United States or Canada. In other respects perfect freedom of the ex- 
change of all the products of human industry exists between the States 
thus allied. 

A treaty between the United States and Canada, to admit all articles 
reciprocally free of duty from each country into the other, might practi- 
cally abolish all duties on importations from any part of the world. 
Either country might throw open its ports to all comers, and thus compel 
the other to follow its example. But under the ZoUverein the same 
duties are collected on the outside frontier of the States thus united. 
Within that line all trade is as untrammeled as within our present 
Union. An equitable distribution of the revenue thus obtained, is made 
among all the States of the Confederation. 

Applicability to the United States and Canada. 

The ZoUverein is comprehensively defined to be the association of a 
number of States for the establishment of a common customs' law and 
customs' line with regard to foreign countries, and for the suppression of 
both in the intercourse of the States within the border line. Tnere 
would be no impediment by discriminating dutits on the importations for 
Toronto if made via. New- York or Boston. If the merchants of Chicago 
found it to their interest to purchase at Montreal they could do so ; and 
buyers from the new province of Manitoba might buy and sell at St. 
Paul, Du L.ith, St. Louis, or New Orleans as freely as at Halifax or any 
city in the Dominion. The St. Lawrence River and Canals would be 
open to us on the same terms as to the Canadians. Internal revenue 
laws could, so far as necessary, be made in conformity with the princi- 
ples of the Union. There could be fair and complete competition every- 
where within the Confederation, and full scope could be given to the 
development of natural advantages wherever they would bring profit to 
the merchant, save needless labor of the people, or yield remunerative 
employment to them. 

Progress of the German Commercial Union. 

In Germany the Zillverein bagan in 1818, little more than half a 
century ago. Its progress to the present time is a sufficient proof of the 
excellence of the principles it embodies and of the mode by which they 



13 

are carried into eifoct. The enlightened State of Prussia was the origin- 
ator and leader in the movement, by forming a commercial union witli a 
f3w minor States— the whole population thus included being at first only 
19,000,000. The experience of the benefits thus created was so satisfac- 
tory that the best publicists of Europe believe that Prussia thus con- 
terred upon the German people advantages scarcely inferior to those she 
initiated by the diffusion of education and intelligence. 

In 1865 the benefits of the German Zollverein had become so well 
proved and appreciated, that instead of the three original States or Duchies 
it included fourteen, with a population of nearly 30,000,000. After the 
war of 186G, the German States to the south of the River Main, having 
preserved their independence, were not under any obligation to renew 
the Zollverein, but preferred to continue members of it. In 1867 a new 
Zollverein treaty was concluded between the States of the North Ger- 
man Confederation and the North German States, the scope of which 
extends to the whole of Germany, except Austria. Even with Austria 
a liberal and comprehensive treaty was effected in 1868, mutually reduc- 
ing duties on both sides, and abolishing all transit duties, and nearly all 
those on exports. " A traveler who has crossed the outer line is freed 
from the vexations of the douanier in every part of Germany, and may 
proceed without interruption from Belgium to the frontier of Russia, 
and from Tyrol to the Baltic, a distance of 700 or 800 miles, including a 
population of 70,000,000."* 



Tendencies of the Proposed Policy. 

It is evident that such a policy tends to lessen the hostility of dif- 
ferently-instituted Governments, while it does not interfere with the 
political institutions of any, and that a strong bias towards the most 
friendly relations on other points naturally arises upon the basis of 
mutual pecuniary interests and intimate social intercourse. 



Economy of the Plan. 

A very considerable saving is made on both sides by the abolition of 
custom houses between tlie States which become members of the Union. 
The laws adopted provide means for mutual investigation, so as to 
Insure accurate returns of the revenue from each place of collection, and 
to provide for the extension of the system to other States. 



* See Muriaj 's Hand Books of the European Continent. 



14 



Reasons for a Continental System. 

In connection witli the political independence, for which Canada 
appears to be ripe, and which, if desired by Canada, will not be opposed 
by Great Britain, the application of the Zollverein principle throughout 
this continent and the adjacent islands is worthy of more attention than 
it has yet received from tlie American people. If instituted between the 
United States and the Dominion, it would not ouly strengthen our power 
and prestige all over the Continent, but direct the public mind towards 
practical and easy, because mutually beneficial, methods of arranging our 
affairs with our neighbors both North and South. So far as it should be 
carried into effect, it could not fail to be profitable to all who would be- 
come parties to it. Instead of buying territory or paying people to enter 
into our political union, we might include Mexico, Cuba, and the 
Central American States, in one Zollverein. 

Our commercial relations with these countries have long been 
unsatisfactory. We should acquire the chief benefits of actual 
ownership without its disadvantages. Additional capital would be 
attracted to Mexico and Central America. Labor in those coun- 
tries would meet with more remunerative and regular employ- 
ment. Thus an antidote would be provided to restless insubordi- 
nation and want of steady industry. Personal intercourse among the 
inhabitants of the different portions of the Continent would be incal- 
culably promoted. The attrition would destroy mutual prejudices. 
Migration would take place to and fro between distant regions. As the 
industry of the inhal^itants of every part would be more amply 
remunerated, they woitld be enabled to buy more largely from each 
other. As the most advanced manufacturers on this Continent, the chief 
share of increase in the sale of manufactured articles would accrue to us ; 
but all would be benefitted. The cost of articles of tropical origin to 
the people of the United States and Canada Avould be diminished. Thus 
the cost of living and of production would be reduced ; industry tlirough- 
out the Continent would be encouraged by the extension of our markets, 
and would be enabled better to compete abroad with other coixntries. 
No other course, so readily adopted, would tend so much to diffuse the 
ideas and industrial habits of the northern and most advanced nations of 
the world. 

The inhabitants of Canada are nearly liomogeneous with those of the 
Northern States, and are accustomed to laws, traditions and institutions 
closely resembling our own; but Cuba, Mexico and Central America have 
populations unlike ours in race, language and education. Mexico has 
deplorably failed in attempts to copy our institutions, and the annexa- 



15 

tion of all tliese couutries with the admission of their people, without 
preliminary training, to equal influence with our own citizens in the 
management of our own affairs is at least of questionable policy. But re 
ciprocal trade with them stands upon a totally different basis and could 
not fail lo be beneficial to all the parties concerned. 

Proposals from Spain as to Cuba. 
It has been stated on official authority that in the projet of a treaty 
drawn up by the Sp .nish Minister at Washington, arrangements were 
suggested for a i extensive reciprocity of trade between Cuba and the 
United States as a satisfactory solution of the difficulties arising from 
the contiguity of that island to our own country. This affords reason 
for hoping that the new and revolutionized Government of Spain, per- 
ceiving that the proposed Zollverein would certainly promote the interests 
of the Cubans themselves, might not be unwilling to enter into such an 
arrangement. The relative positions of Cuba and the United States, and 
the diff>."reace in our respective productions, are such, that she is our 
easiest and naturally our cheapest source of supply for sugar, molasses 
and many other tropical commodities, while our markets, under a liberal 
system, would furnish for her the best and cheapest supplies of nearly 
all articles that she herself does not produce. 

Effects on United States' Manufactures. 

Such a treaty with Spain as would ensure free admission into Cuba 
for our flour, other provisions, and various articles of manufacture, would 
be worth more than the fee simple of the island itself to the farmers and 
manufacturers and merchants of the United States ; and the commerce 
created by a similar arrangement with Mexico would benefit the manu- 
facturers of New England and Pennsylvania far more than the conquest 
or purchase of half the Mexican territory. 

The Subject Demands Adjustment. 

The commercial relations of the diffdreut countries of this Continent, 
being founded not only on the present condition of their people, but on 
their" unalterable positions and variations of climate, unlike those topics 
which are temporarily brought forward for purposes of faction or excite- 
ment and are dropped forever when a vote has been taken on them, 
will constantly recur, in various shapes, as sources of debate, irrita- 
tion and, perhaps, of embroilment, until they are brought upon the 
natural level of perfect freedom. 



18 

The Methods of "Extending Commercial Union. 

I have endeavored to show that such arraugemeuts might be made as 
would afford us all the benefits of annexation without the disadvantages 
of admitting to influence in our own affairs those who are strangers to 
the genius of our institutions. The emancipation of industry and 
freedom in exchanging its products is sometimes extended, as in Great 
Britain, by the repeal of the Corn Laws, and as it would be here by 
the adoption of a Revenue Tariff; but it progresses, also, as in the case of 
the Zollverein and various recent European treaties, by local and recip- 
rocal extensions. The latter method has frequently the advantage of 
s(!curing the approval and support of those who, upon general princiides, 
are protectionists, while their opponents are better satisfied with it 
because it brings the question of liberal, commercial relations to a test 
by which both parties are enabled to judge more accurately as to the 
policy most conducive to the interests of their country. The time has 
come when every well considered scheme of revenue reform must in- 
clude due reference to a Continental or truly American system. 

From a Protectionist Point of View. 

Plausible reasons are frequently brought forward to prove that we 
ought to protect the labor of our citizens against competition with that 
of the ill-paid working men of the densely peopled portions of Europe. 
It is evident these arguments have no force in reference to the commerce 
between the United States and Canada. Both are new countries, and 
labor itself in the person of the emigrant already passes free of duty 
from one to the other. As regards wages, they are substantially on a 
basis of e<iuality. 

Continental Results and Necessities. 
Regarding the subject more widely, we see how great and distinct are 
the special advantages of the different parts of our Continent for pro- 
ducing commodities with which each can purchase those of other sections. 
The Northern States, for inslance, need fear no competition with Mexico 
or Cuba in manufactures or agriculture. These countries would purchase 
in increased quantities our manufactures, cereals, meats and fish, while 
we in return should consume more of their sugar; coffee, fruits and other 
tropical productions. The agricultural productions of Canada are almost 
identical- with those of the Northern States, but would be exchanged 
for our own manufactures, and for the products of warmer climates, in 
part those of our Southern States, and in part of regions yet further 
south, whose products would thus be brought through our territory, and 
afford employment and profit to our people. 



17 

The distance between Cuba and Toronto, via. the St. Lawrence, is 
three times as far as that through the State of New- York, and it is at 
least five times as far by the same Canadian route to Cuba from the Red 
River and Saslvatchewan countries, as through the Valley of the Missis- 
sippi. In every exchange of the products of the Dominion for those of 
the tropics, these distances would necessarily be twice traveled over. 

The North-West Considered. 

The importance of that part of British North-western America to 
which such an arrangement is almost necessary, may be estimated from 
the statement of British explorers, that wheat can be profitably grown 
as far north as Fort Liard, near the 60th parallel of latitude, and that 
barley is produced at Fort Simpson about 4 degrees yet further north. 
This is about 11 degrees north of the northern boundary of Dak otah, and 
15 degrees further north than the northern limits of Vermont and New^ 
Hampshire. Blodgett, speaking of both branches of the Saskatchewan, 
says, " Not only in the earliest period of exploration of these plains, but 
now, they are the great resort for bufRilo herds, which, with the domestic 
herds and the horses of the Indians and the Colonists, remain on them 
and their woodland borders through the year. The simple fact of the 
presence of these vast herds of wild cattle on plains at so high a latitude, 
is ample proof of the climatological and productive capacity of the 
country. Of these plains and their woodland borders the valuable surface 
measures fully five hundred thousand square miles." 

The whole of the Dominion and British North American Possessions, 
stretching from the Atlantic to the Pacific Coast, contains an area of at 
least 3,478,380 square miles— not much less than the whole of Europe, 
with its family of nations. 

Prevention of Smuggling. 

We, who occupy a large portion of a Continent, remote from those 
nations where costly manufactures for export are chiefly produced, have 
in our position great facilities for the prevention of illicit importations 
along the shores of the ocean. The same is true as to Canada and the 
remainder of British North America. But the facilities for smuggling 
between the United States and the adjacent countries are incomparably 
greater. Between the United States and British North America is a 
land, lake and river frontier, so indented as to measure many thousands 
of miles ; and as the population of our respective countries becomes 
dense, it will be impossible to prevent immense quantities of valuable 
goods from being brought into the territories of either country from 
the other without payment of any duty. 



18 

Remedy for Difficulties on the Mexican Frontier. 

Already legitimate trade and tlie public revenue on our Mexican 
frontier are undergoing incalculable injury, from the free trade allowed 
by Mexico on lier Kio Grande border. As each nation has a right to 
make its own tariflf", the main body of the United States might at any 
time be encompassed, both North and South, by similar difficulties. 
But by the establishment of a commercial system, held in common, and 
substituting guard over the sea-coast for that along the inland fron- 
tier, we need run no more risk of smuggling from Mexico and Canada 
than from any one of our own States into another. 

Would Settle the Fishery Question. 

Since the termination of the Reciprocity Treaty inevitable difficulties 
have again arisen as to the right of our citizens to take fish on certain por- 
tions of the shores of the Dominion. The withdrawal of the license system, 
which the Canadians say was ineffectvial, has increased the embarrass- 
ment. War vessels belonging to Canada and England have been ordered 
to the coast, and will be met by vessels from the United States, to see 
that our rights also are protected. As in that region it is sometimes 
difficult in clear weather, and often impossible among the prevalent fogs, 
to tell where our rights begin and those of the Canadians end, serious 
collision, with national calamities on a large scale, may at any time ensue, 
if only one rash officer should unduly exercise the power intrusted to him. 
The question of the fisheries, like that of our commercial and politi- 
cal relations with Canada, should not be left to the chapter of accidents. 

The difficulties connected with the fisheries can be satisl'actorily 
settled only by negotiation. The New England fishermen are desirous 
that three miles, the prescribed distance within which our people may fish, 
should be measured along the shore, and not from certain specified and 
prominent headlands. But by the Convention of 1818, between the 
United States and Great Britain, we formally r jlinquished this right. 
Mr. Webster, when Secretary of State, in 1841, arrived at the conclusion 
that American citizens had no right to take, dry, or cure fish, on or within 
three marine miles, from any of the coasts, bays, creeks or harbors of 
British North America, and that the line may be legally drawn from 
headland to headland, irrespectively of the size of the bay thus included. 
He said, after quoting the first article of the convention : 

" It would appear that by a strict and rigid construction of this article, 
fishing vessels of the United Statics are precluded from entering into the 
bays or harbors of the British Provinces, except for the puri)oses of 
shelter, repairing damages, and obtaining wood and water. A bay, as 
is usually understood, is an arm or recc^ss of the sea, entering from the 
ocean beUveeu capes or headlands ; and the term is applied equally to 



19 



small and larffe tracts of water thus situated. It is common to speak of 
Hudson^ Bay or the Bay of Biscay, although they are very large tracts 
of water." 

Under the general commercial arrangement now proposed, the ques- 
tion as to the fisheries would sink into insignificance, and be easily 
arrano-ed. The interests of the New England fishermen would be fully 
satisfied. In return for the free admission of fish caught by Canadians, 
our people would also receive a more abundant and cheape. supply ot 
food, and would no doubt be confirmed in the possession of fishmg 
privileges at least as profitable as those enjoyed under the treaty. 

Effect upon British Interests. 

To some extent the free admission of American manufactures into 
Canada mio-ht at first diminish the importations of British goods into 
that count^v : but it would open the markets of the United States to 
Canada as well as hers to us. The ultimate result upon British trade is 
to be inferred from the effects produced by the similar arrangement 
between the German States. Not only do the most enlightened political 
economists in Europe assert that the freedom of commerce between the 
states of Germanv, has done and will do more to promote the industry 
and prosperity of the allied States than any other measure or sets of 
measures that their governments could have devised; but it has been 
found that the increase of wealth and population thus arising creates an 
aucrmented demand for foreign products. The German Zollverein had 
not the sliohtest influence in diminishing the trade of Great Britain with 
Germany.' On the contrary, the exports from the former to the latter 
country 'including Holland and Belgium, have been greater during the 
last five years than in any similar period previously. No doubt is enter- 
tained, among thoughtful men, that, if peace is preserved, the German 
Zollverein has laid the foundation of a lasting intercourse, the beneficial 
influence of which will exceed any limits yet assigned to it. 

In the same manner, the interests of the British people would ulti- 
mately be promoted by the application of the Zollverein principle on 
this Continent. It would be an important acknowledgment of the great na- 
tural law that whatever territories nature has joined together and made 
mutually dependant, should not be kept asunder by artificial arrange- 
ments "it would be opposed in Great Britain by those who have not 
learned wisdom from experience, and formerly thought the mother 
country would be ruined by granting permission to the Colonies to im- 
port o-oods on equal terms from all countries. But as it could not fail 
to increase the prosperity of the States which would become parties to 
it it would enlarge the power of their people to purchase abroad. It 



20 

would, bring, almost palpably and by personal perception before their 
minds, and indirectly force upon tlie attention of the rest of the world, 
the truth, that although tariffs for revenue are necessary, the -profit or 
loss attending the exchange of industrial products among men is as 
independent of their various allegiances as it is of party fealty or reli- 
gious faith among the individual members of each single State. 

Conclusion — A Beneficial Revolution in Home and Foreign 
Commerce. 

By instituting a Zollverein with the Dominion and other parts of 
British North America, we should initiate a system which would do away 
with all the corrupt temptations for buying the property of our neigh- 
bors. Each party would be brought face to face with the actual interests 
naturally arising from its condition ; prejudices founded on erroneous 
opinions would be destroyed. Whatever political relations would really 
be mutually advantageous, wo iild follow as the natural results of friendly 
and beneficial intercourse. The people of the United States would be 
enabled by practical experience to decide how far peace and perfectly re- 
ciprocal commerce with adjacent countries, are preferable to admitting 
dissimilar nations to a shaieof power in governing us, and to the ancient 
European system of establishing jurisdiction over them. The adoption 
of the union I propose would be the initiation of a favorable revolution 
in our commerce, which has for many years been less prosperous than 
that of the other chief nations of the world. The change in our foreign 
relations, and the benefits arising from it, would begin in the States 
along our northern frontier, but in every part of our country would give 
an impetus to the industry and spirit of enterprise which abound among 
us, and to that policy which would develop them to the utmost ; and 
we should no longer see the great prizes of trade fall into the hands of 
others, while the character of our people and our unequalled agricultural, 
mining, manufacturing and commercial facilities, give us the means of 
grasping and retaining them. 

I have the honor to be, 

Very respectfully, 

Your Ob't Servant, 

ELIJAH WARD. 

To Messrs. Randall, Judd, Holman, Bennett, Niblack, Hamble- 
TON, Getz, Haight, Beck and Eldridge. 

New- York, June 15^/i, 1870. 



LB S '12 



